Union, trustee object to A&P retention plan
Union, trustee object to A&P retention plan
A plan to pay $5 million to key employees of A&P as the chain winds down its operations has met objections by a union representing workers as well as a trustee involved with the bankruptcy proceedings.
A&P filed a Key Employee Retention Plan motion in late August that sought to incentivize 495 key employees to stay on. Among the employees were 83 corporate and 412 non-union employees. A&P argued it was necessary to complete the Chapter 11 “sale strategy” based on the auction of its locations.
Trustee William K. Harrington and the United Food & Commercial Workers International argued that the plan unfairly discriminates against union workers.
A union statement further said that the KERP plan was “outrageous,” noting that under the proposed plan 20 percent of the $5 million would go to 11 employees; the trustee said five employees would receive 11 percent of the total payouts.
A hearing is scheduled for later this week in U.S. Bankruptcy Court in White Plains, NY.